Summers pulls out of Federal Reserve running

<p>Larry Summers has pulled out of the race to be named the head of the Federal Reserve.</p>

Former secretary of the US treasury Larry Summers has withdrawn from the race to be named the head of the Federal Reserve.

In a letter to president Barack Obama, the official, who was deemed the frontrunner by many economists, said any confirmation process from him was likely to be "acrimonious".

Analysts said his decision would leave current Federal Reserve vice-chairman Janet Yellen as the main contender to take over Ben Bernanke at the central bank.

Ms Yellen is viewed as less inclined towards the immediate scaling back of the body's key economic stimulus programme.

The dollar fell against Asian currency as markets responded to the announcement yesterday (September 15th).

President Obama said he would always be grateful to Mr Summers for his hard work and services carried out on behalf of the world's largest economy.

He added: "It was in no small part because of his expertise, wisdom and leadership that we wrestled the economy back to growth and made the kind of progress we are seeing today."

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.